IGT sustains 2020 losses but weathers pandemic with strong momentum for 2021

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International Game Technology PLC (IGT) added to a flurry of Q4 and full-year financial results posted by the big industry names this week, citing challenging trading amid a year that was impacted negatively by COVID-19.

Fourth quarter results reflected, said the firm, the continued global impact of the COVID-19 pandemic, with total Q4 revenue of $885m (2019: $1.04bn). Global Lottery revenue totals, however, reached $630m, up 11% from the prior year.

Global Gaming revenue in the quarter came in at $255m, down 46% from the prior year, although Digital & Betting service revenue rose nearly 55% year-on-year. Operating income was $96m (2019: $40m). 

The net loss attributable to IGT in Q4 was $242m versus $168 million, driven by higher non-cash foreign exchange losses, primarily on Euro-denominated debt instruments

Turning to the full year 2020 financial highlights total revenue was $3.12bn (2019: $4.03bn), with Global Lottery revenue of $2.16bn, down 6%. Global Gaming revenue was $951m, down 45% as the pandemic caused protracted casino closures and operating restrictions around the world.

The full-year operating loss was $107m compared to operating income of $478m in the prior-year period, with a net loss attributable to IGT of $898m (2019: $19m). The shortfall was said by IGT to be driven by higher non-cash foreign exchange losses, primarily on Euro-denominated debt instruments, and goodwill impairment.

CEO Marco Sala told investors: “The solid results we achieved for this pandemic-impacted year have given us momentum into 2021. They are a result of the vision, agility, and discipline of the IGT team as well as the distinct advantages of our diverse portfolio. 

“We also made important strategic progress. The company undertook a comprehensive reorganization to sharpen our focus on our core competencies and drive structural operational efficiencies. This provides a clear path to increasing shareholder value as we build on our leadership positions with a stronger revenue and profit growth profile.”

CFO Max Chiara added: “We generated $866m in cash from operating activities during the year, among the highest levels in five years, primarily driven by resilient Global Lottery performance and rigorous cost and invested capital controls. Liquidity improved more than $300m to over $2.7bn. As a leaner, stronger company, we expect leverage to return to pre-pandemic levels in the next 12-18 months.”


Fourth Quarter:

– $885m in revenue and $96m in operating income from continuing operations includes highest Global Lottery revenue and profit performance in two years

– Cash from operating activities of $255m; combined free cash flow of $191m

– Net loss of $220m, includes $155m non-cash foreign exchange loss; combined Adjusted EBITDA of $321m driven by high profit flow-through of Global Lottery same-store sales growth and benefit from cost-saving actions

Full Year:

– 2020 revenue from continuing operations of $3.12bn reflects resilience of Global Lottery, including double-digit same-store sales growth in North America in the second half of the year and growing contribution from Digital & Betting activities

– Cash from operating activities totaled $866m and combined free cash flow was $576m, among the highest levels in five years

– Reduced net debt by $71m as reported, $433m excluding unfavorable foreign currency impact